The Fast50 guys aren't doing so well. Just a year ago local CPAs Brightman Almagor lead an initiative to add Israel to the global Fast50 competition held by its partner firm Deloitte Touche, in which companies are ranked according to their growth rates.
That was back in the technology heyday when managing partner Igal Brightman was appointed to a senior position in the global firm as head of the technology sector. The appointment was considered natural in light of the technology sector's weight in accounting work and Israel's weight in the technology sector. It seemed like The Word from Zion would be heard the world over.
When Brightman Almagor set criteria for the Israeli Fast50, the technology sector was still in halcyon days and the Israeli firm determined companies would be rated according to their increase in market capitalization. Since the ranking included startups that are not publicly traded, the ranking used the numbers from the latest fundraising round and compared them to the pre-money valuations in prior rounds.
But just as the rankings were published, the results themselves became irrelevant in the best cases and absolutely ridiculous in the worst cases. Just then, in early 2001, the air began to hiss out of the startup valuations bubble. With each passing month, the "value" at which the startups raised financing became less and less relevant and the valuations collapsed at the same pace they had once inflated. And sure enough, in the last year, several of Israel¿s most promising startups were sold off at bargain basement prices and some just closed their doors.